Production Attainment

Production Attainment measures the degree to which the manufacturing function is capable of
reaching its targeted production output. A manufacturing plant's attainment rate can be
negatively impacted by poorly maintained factory equipment, high defect rates, ineffective
demand planning or poor utilization of plant resources.
A low value for this KPI will also lead to higher costs per unit produced, due to the fact that the
factories' machines are not making the most of their production runs (which take time and money
to set up). Factories that are consistently low performers for this KPI may want to periodically
review why expected attainment levels are not being achieved (e.g., production audits,
equipment inspections, etc.). Significant improvement in Production Attainment Rate can help
reduce cost per unit, shorten order cycle times and, as a result, and improve customer
satisfaction.
This production performance metric measures production levels over a specific time period and
calculates what percentage of the time a target production level is achieved.

Production Attainment = # of Periods Production Target Met / Total Time Periods

No. of Days Production Target Units Produced

Day 1 1000 700
Day 2 1000 900
Day 3 1000 1000
Day 4 1000 600
Day 5 1000 800
Day 6 1000 1200
Day 7 1000 1100
Day 8 1000 900
Day 9 1000 1200
Day 10 1000 700
Day 11 1000 800
Day 12 1000 900
Day 13 1000 1000
Day 14 1000 1200
Total Production Target 14000 Total Production 13000

(Estimated data)
 Product Att ainment
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day 10 Day 11 Day 12 Day 13 Day 14

Production Target Units Produced

Nike hasn’t meet their production target which can be seen in above analysis and thus product
attainment KPI must be improved for reducing costs, increasing efficiency in production process
and target production level to meet customer demand. The production performance metric could
be improved by implementing following practices:-
 Preventative maintenance performed regularly on manufacturing equipment
 Efficient production run setup cycle times
 Low defect rates for production output

Transit Time to Distance

Transit time is the elapsed time from the when a shipment leaves the facility to the time it arrives
at the customer’s location. Transit time is typically measured in hours or days depending on the
mode of transportation. Each type of carrier has a standard time to allocate to its transportation
efforts.
The time for each carrier is typically determined by comparing it to the industry average.  The
allotted time is then passed on to the customers. The total amount of time the product is in
motion is most commonly dependent on the outside agency. Transit time directly correlates with
lead-time; therefore, the length of time the product is in transit may have a positive or negative
affect on lead-time. Transit times vary depending on the distance from the customer and the
transportation mode that has been chose.
Con-Way offers a transit time calculator that allows you to understand how long you should
expect your product to remain in transit. Con-Way uses zip codes to closely estimate the time
your product will be in transit.
The transit time to distance compares the distance a shipment travels to the time it takes it to go
from pickup to destination.

Transit Time to Distance Example: 7 Days and 8000 miles (estimated)

Transit time to distance = (time to go from pickup to destination) / (# miles)

Transit time to distance = 7 days / 5,000 miles
Transit time to distance = 0.0014 days/miles

Time in transit can vary according to the shipping route or to the mode of transportation used.
For example, transit times for next-day air shipments and ground transportation can vary
enormously. Most shipping carriers measure time in transit by hours and days. These
measurements are often available for consumers when buying products from merchants that
offer last mile carrier tracking for online purchases.

Time in transit considerations should also include the time it takes to get products from the port
to the warehouse. In 2021, Nike faced international port delays have increasingly impacted
company trying to get their products from the ports to their distribution centers, extending time
in transit of imported products by up to two months. While there are many factors that may
affect freight transit time, including the time it takes to get your products into the warehouse in
your time in transit calculations keeps your supply chain operations running optimally.